As NFTs continue to dominate the crypto space, Coinbase recently announced its plans to join the trend and create its NFT marketplace that would rival current giants like OpeanSea. While the platform is yet to be available, Coinbase has launched a user waitlist for the desktop product which it hopes would be out before the year runs out.
Non-fungible Tokens (NFTs) are the newest blockchain craze. It has provided a new channel of income and revenue generation within the crypto space where artists can earn from their craft. NFTs have grown hugely popular over the last few months and now accounts for a huge part of the revenues generated in the crypto space monthly. Artists may sell their material as NFTs in return for the cryptocurrency of their choice, which would then create a unique marketplace for both NFT creators and collectors.
One huge problem users have faced is that NFTs aren’t easily accessible to the typical person who simply dabbles in the market. Just like the crypto space required a form of technical knowledge in its early days, the average user is often unable to benefit from NFTs which so far has been a limiting factor.
Features of the Marketplace
Coinbase hopes to change the system with its NFT marketplace which it defines as a peer-to-peer marketplace meant to simplify the entire NFT process. The crypto firm noted that in addition to supporting the minting and exhibiting of NFTs, the NFT platform will also allow viewers to discover and purchase new goods. Coinbase NFT will make it easier for authors to “retain creative control” of their content, according to the business. The ERC-721 and ERC-1155 Ethereum-based standards will be supported in the initial launch.
While more details of the soon-to-be-launched marketplace are to be expected in the coming weeks, it is reported that Coinbase’s NFT platform would integrate social features, centralized showcases, and discovery features. A statement from Coinbase noted, “Coinbase NFT will make minting, purchasing, showcasing, and discovering NFTs easier than ever. We’re making NFTs more accessible by building intuitive interfaces that put the complexity behind the scenes. We’re adding social features that open new avenues for conversation & discovery.”
Furthermore, curated personal feeds, profiles for showcasing work in a centralized manner, and social tools for establishing communities will be among the other features. Although Coinbase NFT isn’t officially available, customers are encouraged to sign up for early access.
A Competitive Market to be Expected
If NFTs continue to garner investor interest from individuals shopping for high-priced digital artefacts and art, it might open up a substantial revenue source for Coinbase, which has experienced a difficult few months. The NFT market is exhibiting more durability than many predicted after spiking earlier this year and again in August, but it is still seeing considerably bigger fluctuations than already volatile cryptocurrency values. In August, OpenSea had a transaction volume of $3.4 billion, which was a new high.
Although OpenSea has proven to be the most popular NFT marketplace, it is far from the only platform which Coinbase will have to contend with. Rivals such as Binance and FTX have recently declared their entry into the NFT ecosystem. Coinbase is starting far later than some of its soon-to-be competitors, while many crypto investors regard NFTs as just scraping the surface of their possibilities. Nonetheless, given Coinbase’s consumer crypto name recognition, this will almost certainly be a major launch and will make spark intense competition amongst the existing NFT marketplaces.